Ronald Enterprises Ltd. has estimated the following costs for producing and selling 16,600 units of its product:

Direct materials		$83,000
Direct labour		132,800
Variable overhead		49,800
Fixed overhead		30,000
Variable selling and administrative expenses		49,800
Fixed selling and administrative expenses		37,500

Ronald Enterprises income tax rate is 40%.

(a)

Given that the selling price of one unit is $39, calculate how many units Ronald Enterprises would have to sell in order to break even.

Assume the selling price is $44 per unit. Calculate how many units Ronald Enterprises would have to sell in order to produce a profit of $25,700 before taxes.

Calculate what price Ronald Enterprises would have to charge in order to produce a profit of $27,000 after taxes if 7,500 units were produced and sold.